June 24 (Bloomberg) -- It’s fashionable to say the era of
strong emerging-market growth is over. As the U.S. recovers, the
global cost of capital will rise, holding back investment;
against this background, avoiding the next crisis is the best
that most emerging economies can do. If you take this view,
India might seem a perfect example, with its widening current
account deficit, heavy public borrowing, persistent inflation
and weak currency.
I don’t think so. As a general matter, emerging-market
gloom is overdone. India, in particular, could teach the
pessimists a lesson.